15. Restructuring, Acquisition and Divestiture Related Costs

The following table summarizes restructuring, acquisition and divestiture related costs recorded in the accompanying consolidated statements of operations (in thousands):

	Year Ended December 31,
	2017		2016			2015
2016 restructuring	$	332	$	3,049		$	3,148
2015 restructuring		—		—			1,484
2011 restructuring		14		(79	)		1,208
Total restructuring charges	$	346	$	2,970		$	5,840
Acquisition and related charges	$	7,196	$	4,975		$	1,301
Divestiture related charges		—		—			1,113
Total acquisition and divestiture related charges	$	7,196	$	4,975		$	2,414
Total restructuring, acquisition and divestiture related costs	$	7,542	$	7,945		$	8,254

2016 Restructuring

During the third quarter of 2015, the Company initiated the 2016 restructuring program, which included consolidating certain manufacturing operations to optimize facility footprint and better utilize resources, and reducing redundant costs due to productivity cost savings and business volume reductions. In August 2016, the Company sold its facility in Chatsworth, California for a net cash consideration of $3.4 million and recognized a gain on sale of $1.6 million as part of restructuring, acquisition and divestiture related costs. As of December 31, 2017, the Company incurred cumulative costs related to this restructuring plan totaling $6.5 million, net of the gain on the sale of the Chatsworth, California facility. The plan was completed in 2017.

The following table summarizes restructuring costs associated with the 2016 restructuring program for each segment and unallocated corporate costs (in thousands):

	Year Ended						Cumulative Costs as of
	December 31, 2017		December 31, 2016		December 31, 2015		December 31, 2017
Photonics	$	—	$	813	$	55	$	868
Vision		331		1,862		2,200		4,393
Precision Motion		—		106		833		939
Unallocated Corporate and Shared Services		1		268		60		329
Total	$	332	$	3,049	$	3,148	$	6,529

2015 Restructuring

During the first quarter of 2015, the Company implemented a program to eliminate redundant costs, as a result of acquisition and divestiture activities, to better align operations to the Company’s strategic growth plans, to further integrate its business lines, and as a consequence of productivity initiatives. Restructuring costs incurred in 2015 of $1.4 million and $0.1 million were related to severance and other, respectively. The plan was completed during 2015.

The following table summarizes the total costs for each segment and unallocated corporate costs related to the 2015 restructuring plan (in thousands):

	Year Ended
	December 31, 2015
Photonics	$	542
Vision		525
Precision Motion		79
Unallocated Corporate and Shared Services		338
Total	$	1,484

2011 Restructuring

In November 2011, the Company announced a strategic initiative (“2011 restructuring”) which aimed to consolidate operations to reduce the Company’s cost structure and improve operational efficiency. In total, eleven facilities have been exited as part of the 2011 restructuring plan. These eliminations resulted in the consolidation of the manufacturing facilities of the Scientific Lasers business and the optics products, the consolidation of the Company’s German operations into one facility, the consolidation of the laser scanners business into the Company’s Bedford, Massachusetts facility and the consolidation of the Company’s Japan operation into one facility. Included in the eleven facilities exited are five facilities exited as part of the Semiconductor and Laser Systems business divestitures. The restructuring costs for the Semiconductor and Laser Systems businesses have been excluded from the table below as they have been reported as part of the operating results from discontinued operations. The Company substantially completed the 2011 restructuring program in 2013. In March 2016, the Company sold its previously exited Laser Systems facility located in Orlando, Florida for cash at the net carrying value of $3.5 million. In December 2016, the lease agreement for the Company’s previously exited laser scanner business facility was terminated, which resulted in a benefit of $0.2 million.

The following table summarizes restructuring costs for each segment and unallocated corporate costs related to the 2011 restructuring plan (in thousands):

								Cumulative
	Year Ended December 31,							Costs as of
	2017		2016			2015		December 31, 2017
Photonics	$	—	$	(188	)	$	—	$	1,751
Vision		—		—			—		48
Precision Motion		—		—			—		122
Unallocated Corporate and Shared Services		14		109			1,208		3,276
Total	$	14	$	(79	)	$	1,208	$	5,197

Rollforward of Accrued Expenses Related to Restructuring

The following table summarizes the accrual activities, by component, related to the Company’s restructuring charges recorded in the accompanying consolidated balance sheets (in thousands):

	Total			Severance			Facility			Depreciation			Other (b)
Balance at December 31, 2015	$	1,882		$	1,358		$	406		$	—		$	118
Restructuring charges (a)		4,929			2,738			777			616			798
Reserves reversed		(322	)		(322	)		—			—			—
Cash payments		(4,181	)		(3,170	)		(104	)		—			(907	)
Non-cash write-offs and other adjustments		(572	)		7			32			(616	)		5
Balance at December 31, 2016		1,736			611			1,111			—			14
Restructuring charges		346			185			146			—			15
Cash payments		(1,212	)		(692	)		(503	)		—			(17	)
Non-cash write-offs and other adjustments		(64	)		(65	)		9			—			(8	)
Balance at December 31, 2017	$	806		$	39		$	763		$	—		$	4

(a)

Excludes $1.6 million of gain on the sale of the Chatsworth, California facility.

(b)

Other restructuring charges mainly related to consulting fees and relocation costs.

The Company expects to make $0.4 million in cash payments during the twelve months ending December 31, 2018.

Acquisition and Divestiture Related Charges

Acquisition related costs incurred to effect business combinations, including finders’ fees, legal, valuation and other professional or consulting fees, totaled $6.8 million, $2.5 million, and $1.5 million during 2017, 2016, and 2015, respectively. Acquisition related costs recognized under earn-out agreements in connection with acquisitions totaled $0.4 million, $2.5 million, and $(0.2) million during 2017, 2016, and 2015, respectively. Expenses associated with divestiture activities of $1.1 million during 2015 included legal and professional fees directly related to the completion of the JK Lasers divestiture.